Abu Dhabi Global Market (ADGM), the financial centre of the UAE’s capital, has successfully completed trials of a new app for improving Know-Your-Customer (KYC) processes, known as e-KYC.

The app is designed to simplify the know-your-customer obligations incumbent on financial institutions and other regulated bodies under anti-money laundering laws, and was developed with blockchain partners, banks and advisors, including KPMG.

Rather than submitting to individual ID checks and verification, the app enables customers to verify their identity on a one-off basis, recording the information immutably on a blockchain. From there, the information can be accessed securely by other institutions, with a full audit trail to ensure compliance with relevant laws.

According to those participating in the trial, the technology has allows for a “radically simplified” KYC process, which will deliver cost and efficiency savings during the onboarding process.

Richard Teng, CEO of the FSRA of ADGM, welcomed the project, and the “tangible benefits” it delivers for financial institutions in improving the KYC process. He said, “By harnessing the power of technologies such as blockchain, the e-KYC project has demonstrated tangible benefits that may be offered by an e-KYC utility for financial institutions in the UAE. In addition to enhancing KYC checks across the industry, the utility can achieve significant cost efficiencies and financial inclusion driven by unified KYC standards.

According to the executive, “The use of digital platforms to share information, transact and test solutions forms a core part of ADGM’s FinTech strategy. We look forward to delivering further meaningful results through the ADGM Digital Sandbox initiative, where we will facilitate FinTech-institutional partnerships and host consortium projects such as the e-KYC project.”

The platform allows individuals to have more control over their personal data, while simultaneously allowing institutional members access to the KYC material they require to discharge their obligations.

At present, KYC checks are conducted on an institution by institution basis, with the app expected to significantly streamline the process.

It comes at a time when several other regulators and banks are investigating blockchain technology for KYC in a bid to improve the efficiency of the process.

Dubai is set for the launch of a new cryptocurrency exchange, according to reports in local media.

The first of its kind in United Arab Emirates (UAE), the new exchange is being hailed as a landmark development in the maturing Dubai crypto market, as industry, regulators and government continue to chase cryptocurrency business and investment.

As reported in The Gulf Today, crypto firm Crypto Bulls has teamed up with Al Zarooni Group and Gulf Coin Gold to launch the Crypto Bulls exchange, an exchange which will focus on the Dubai market.

Suhail Al Zaroon, chairman of the Al Zarooni Foundation, said the move would help UAE attract investment from more cryptocurrency businesses and investors. He was quoted by the news outlet as saying, “This will be the milestone for getting global investments opportunity from all over the Globe in UAE, as all financial techs [companies] and investors are looking forward in Crypto & Blockchain Industry.”

The new crypto exchange has the backing of the government in UAE, which harbors ambitions of transforming Dubai into a haven for blockchain and cryptocurrency businesses—following the footsteps of jurisdictions such as Malta, South Korea and Singapore.

The government has previously launched its blockchain strategy, which targets 50% of government transactions on blockchain by 2021.

As a result, Dubai has recently seen a number of measures drafted in support of the sector, including new regulation for the sector, as well as the pending launch of a government backed cryptocurrency.

Shasha Gupta of Crypto Bulls said, “With this unique support from UAE government, Crypto Bulls would be able to attract a huge number of foreign investments in crypto from Asia & Middle East.” He noted that the industry has experienced significant growth in the region in recent years, with strong demand for crypto trading services from within Dubai.

The exchange will allow investors to trade against local currency Arab Emirate Dirham, although it remains unclear as to which specific currency pairs will be supported at launch.

The development is being seen as a positive step towards turning Dubai into a crypto hotspot, at a time of increasing competition from rival jurisdictions.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

A new set of rules will soon allow domestic companies in the United Arab Emirates (UAE) to raise funds via initial coin offerings (ICOs).

On Monday, Reutersquoted Obaid Saif al-Zaabi, head of the Emirates Securities and Commodities Authority (ESCA), saying that the board “has approved considering ICOs as securities.” If all goes to plan, a legal framework regulating ICO activities in UAE will be introduced in 2019.

Under the proposed legal framework, companies in the country will be allowed to use ICOs as an alternative to traditional fundraising methods. Currently, firms are using initial public offering (IPOs), which involve selling shares in the company to the public.

The first draft of these new rules is already being set up. According to al-Zaabi, the security watchdog is also working with stock trading platforms in Abu Dhabi and Dubai to prepare them for the new digital transactions.

Lack of IPO activities in the past years has forced authorities in UAE to allow companies to raise their funds using ICOs. Low oil prices and unimpressive equities markets have been cited as the cause of the lack of IPO activities in UAE and its surrounding countries. In addition to new ICOs laws, the state is also planning to create rules that will help raise IPOs. The new IPO laws will encourage family owners to sell up to a 100% share of their firms.

If and when the new ICO regulations come into law, UAE will be among the few countries in the world to have brought in the regulatory framework for the cryptocurrency and blockchain sector. It joins Malta, which recently passed several bills providing a legal basis for blockchain, cryptocurrencies, and ICOs.

Other countries are also hard at work in regulating ICO activities. In September, the European Parliament agreed to draft a set of regulations that would make ICOs more accessible within the European Union (EU).

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.